Polymarket Seeks CFTC Approval to Reopen Platform to US Traders

Polymarket is in discussions with the Commodity Futures Trading Commission (CFTC) to relaunch its primary prediction market for US-based users. According to sources, the company has been engaged in talks with CFTC officials to lift the ban on US traders, which was imposed following a 2022 settlement. The CFTC had previously approved a separate US-only platform operated by Polymarket, but it has yet to be fully launched. Prediction markets, which allow users to trade contracts based on future events, have faced increased scrutiny from states that view them as unlicensed gambling operations. The CFTC's approval process may be simplified due to the current vacancy of four commission seats, leaving Chairman Michael Selig as the sole sitting commissioner. Selig has previously argued that states lack the authority to regulate prediction markets, which fall under the CFTC's jurisdiction. The development comes after a soldier was accused of using a VPN to access Polymarket's international exchange and make over $400,000 from trades based on classified information. Polymarket has declined to comment on the matter.